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Airports Procurement 101 Airports Procurement 101 Developing an Effective Scope Work Developing an Effective Scope Work Martin Obregon, Jr. Martin Obregon, Jr. Executive Assistant – Airports Executive Assistant – Airports Purchasing and Contracts Services Purchasing and Contracts Services Los Angeles Word Airports Los Angeles Word Airports [email protected] ACA Fall Conference 2009 ACA Fall Conference 2009

Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

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Page 1: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Airports Procurement 101 Airports Procurement 101

Developing an Effective Scope WorkDeveloping an Effective Scope Work

Martin Obregon, Jr.Martin Obregon, Jr.Executive Assistant – AirportsExecutive Assistant – Airports

Purchasing and Contracts ServicesPurchasing and Contracts ServicesLos Angeles Word AirportsLos Angeles Word Airports

[email protected]

ACA Fall Conference 2009ACA Fall Conference 2009

Page 2: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Overview/Objectives of Seminar

Definition of Scope of Work –I will understand the meaning of Scope of Work.

Functions of a Scope of Work –I will understand the role of a Scope of Work in contract development and performance.

Elements of an Effective Scope of Work –I will identify important ingredients to an effective Scope of Work.

Page 3: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Procurement Vehicle

Q: What should I use?

Request for Proposals (RFP) Request for Bids (RFB) Request for Qualifications (RFQ)

A: It depends on what it is that you want to buy, whether you can specify what it is that you want to buy and whether cost is the only criteria.

Page 4: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Definition of Scope of Work (SOW)

Narrative description of products and/or services to be supplied under contract that states:

1) Specifications or other minimum requirements;

2) Performance dates, times, and locations, if applicable; and,

3) Quality requirements.

Page 5: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Definition of Scope of Work (SOW)

The SOW serves as the basis for the contractor’s response and as the baseline against which your agency can assess contract progress and measure any contractual changes during contract performance.

(from Project Management Terms, A Working Glossary)

Page 6: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Functions of Scope of Work (SOW)

Stands as the most important component of an RFP/RFB since it defines the work being solicited in the competition.

Clarifies “who, what, where , when, why, and how.”

Works as a “stand-alone” document within the solicitation as well as the contract.

States the mutual obligations between LAWA and the Contractor that are enforceable.

Page 7: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Planning/Preparing the SOW

THINK through what you want the work effort to achieve.

ASK yourself the basic questions about the work effort: Who (qualifications)? What? Where? When? Why? How?

Page 8: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Planning/Preparing the SOW (cont.)

More specifically,

PLAN out the use, functionality, or outcome that you expect from this work effort.

STATE what are the existing conditions or framework into which this work effort must fit.

ANALYZE whether you need milestones, deliverables, or general support from this work effort.

DETERMINE the schedule or term in which the work effort must be accomplished.

Page 9: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Planning/Preparing the SOW (cont.)

AFFIRM why this work effort is necessary. UNDERSTAND whether LAWA or the

contractor defines the best method for getting the work effort done.

THINK through the Life Cycle Costs of this work effort.

CONFIRM that there is budget support for this work effort.

Page 10: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Frameworks/Types of SOWs

Examples:1. Performance Based2. Detailed/Design Specifications3. Level of Effort

Page 11: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Performance-Based SOW

Professional Services

• Airport states its needs or problem.• Focuses on the purpose of the work effort.• Contractor determines how best to meet LAWA’s

stated objectives.• Measures results through technical and quality

achievement, schedule progress, or cost performance• Sets the level of Acceptance of Work/Quality

Assurance.

Page 12: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Detailed/Design SOW

Technical IT Services, Construction

• Defines how contractor does the work. • Provides highly detailed plans, requirements,

measurements.• Establishes technical specifications, quality controls.• States specific parameters on how to perform work or

make product.

Page 13: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Level of EffortCommodities, Equipment, Non-Professional Services

• Deliverables are set as either products or increments of an hour of work.

• Stipulates when, in what manner, and in what period of time the work needs to be completed.

• Delivery order or task order contracts.

Page 14: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Writing an Effective SOW

In very simple terms, an effective Scope of Work is a statement that always passes the SMART Test in that provides information on the proposed work effort that is –

SpecificMeasurable AccountableReasonableTime-based

Page 15: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Writing an Effective SOW, cont.

An effective statement of work reflects the careful planning that precedes it.

WRITE clearly, concisely, and with focus. USE precise language given the multiple

purposes of the SOW in the contracting process –

1) Basis for competitive proffer by contractor2) Establishes the criteria for selection

3) Exhibit A/SOW in contract4) Baseline for managing contract

Page 16: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Writing an Effective SOW, cont.

INCORPORATE business writing sense: No ambiguity – one reading, one meaning.

USE action verbs and stick with the active voice.

USE “shall” sentence structure to indicate a binding provision on the contractor;

USE “will” sentence structure to indicate a proposed future action by your agency.

RELY on plain-speak. (No jargon, or vague terms)

Page 17: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Writing an Effective SOW, cont.

DETERMINE the best organizational strategy: logical grouping, chronology, etc.

SPELL out acronyms and provide definitions.

SPECIFY how tasks/work efforts are assessed for completion and payment

Page 18: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template

Project Description Phase Description/Milestones Tasks Major Deliverables/Timeframe Methodology/Approach Criteria Technical/Functional Specifications Geographical Scope Acceptance of Work/ Quality Assurance Optional Material/Services Supplies/Material/Equipment Available Resources Progress/Compliance

Page 19: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Project Description Background

Division acquiring services/goods Rationale for RFP

Services to be performed Timeline Location

Page 20: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Objectives

Identify your group’s outcomes -- what it hopes to achieve as a result of the RFP.

Indicate how many contract(s) will be awarded to accomplish work effort.

Define objectives for overall effort and/or individual tasks.

Page 21: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Phase Description/Milestones Identify the Phases/Milestones. State the deliverables for each Phase/Milestone. Clarify when payment will occur:

End of contract, end of phase, upon receipt of deliverable

Define the amount of payment (as a % of the overall contract amount) or,

Indicate if proposer is required to propose a % or, in the case of concessions, a MAG.

Page 22: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Tasks

Provide guidance to assist the Proposer in developing their proposals. (Tasks may vary depending on type of scopes.)

Identify the specific tasks that the contractor must complete to achieve the deliverables.

Describe what work needs to take place. Provide the framework to establish methodology. Outline what will happen during each

Phase/Milestone. (Tasks may provide the basis for payment.)

Page 23: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Major Deliverables

Link to milestone/phases, if applicable. Identifies tangible products or outcomes:

Defining quality, format, quantity, deadlines. Identify requirements for payment:

Single deliverable paid by one invoice Several deliverables paid by several invoices

according to completion of milestone/phase Specify payment will be made for “satisfactory

work” only.

Page 24: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Major Deliverables (cont.)

Identify On-call requirements Identify type of payment for On-call services:

Daily rate, flat fee, rate per call Specify if “RUSH” rates are needed:

Places obligation on contractor to deliver within specified time for any “Rush” item

Page 25: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Methodology/Approach Criteria Describes how contractor will specifically go about work.

OR Indicate that the contractor must propose its own

methodology (Performance Based SOW). State any industry, discipline, or organizational

standards along with licensing requirements. Identify work that will be done according to proposed

vs. prescribed methodology. Identify the contractor’s obligation to provide

adequately trained staff to fulfill the contract.

Page 26: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Technical/Functional Specifications (IT)

Provide a description of the technical infrastructure, systems and/or software within the organization.

Identify requirements for working within the existing environment.

Identify specific aspects of the scope that will impact the existing environment.

Identify any new technology required. Identify the specific obligations regarding

Compatibility, Training, Documentation

Page 27: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Geographical Scope

Describe location of work. (Location will impact costs of contractor insurance.)

State any impact on airport operation. Describe impact on infrastructure. Identify travel requirements for contractor

Frequency, duration, schedule, inter-state, international

Identify any risks associated with such travel Construction zone, Airfield, Hazardous materials

Identify parameters for travel reimbursement.

Page 28: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Acceptance of Work/Quality Assurance Identify the expectations and authority that will

determine acceptance of deliverable. Identify areas that can be the measure for determining

acceptance Speed/timeliness of service delivery Meeting or exceeding specification Customer Service (Client Services)

Indicate any penalty for not meeting the deliverable/service Withhold payment, Liquidated Damages, % of overall

contract Identify benchmarks or a baseline level of service. Identify frequency for assessing Acceptance

Weekly, Monthly, Quarterly

Page 29: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Acceptance of Work/Quality Assurance (cont.)

Identify the point at which failure constitutes breach of contract.

Identify any records contractor must provide Reports, Statistics, Findings, Data,

Recommendations Identify any other industry, government, or internal

performance standard. Identify aspects of the work for which the contractor

will be required to provide its own Quality Assurance methodology.

Page 30: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Optional Materials/Services

Indicate any opportunity for contractors to suggest additional material or services that may meet or exceed standards Equipment, Services, Upgrades, Software,

Information Clearly indicate that options will be considered, but

will not necessarily be included in the resultant contract.

Page 31: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Supplies/Materials/Equipment

Identify any supplies that the contractor must supply or use for completion of the work.

Identify any supplies/materials/equipment /space LAWA will provide for use during contract.

Identify any standards for use of specialized equipment: Brand, Model, Specifications

Page 32: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Available Resources

State any resources that would be available to assist the contractor Reports, Manuals, Schematics, Blueprints,

Research, Access to Systems

Page 33: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

SOW Template, cont.

Progress/Compliance

Identify the contractor’s reporting obligations Oral, Written, Email, Disk, timelines, deadlines

Identify any communication obligations relating to progress

Identify specific requirements for meetings with the project authority Weekly, Monthly, Quarterly, Locations

Page 34: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Impact of an Effective SOW

Solicitation Stage (pre-contract)

Reduces number of questions to clarify solicitation and resulting addenda.

Maintains a more predictable schedule and may eliminate extensions to the submittal deadline.

Encourages competition. Maintains LAWA’s reputation. Establishes a good foundation for evaluation criteria. May reduce need for amendments to correct scope.

Page 35: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

Impact of an Effective SOW, cont.

Contract Stage

Prevents operational risks such as project failure or delay.

Enhances contract management. Reduces legal risks related to contractor litigation,

dispute resolution, etc. Promotes positive image of your agency.

Page 36: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

credits

Developing an Effective Scope of Work

Presentation prepared by:

Estelle Stevens Senior Management Analyst II

LAWA Contract ServicesDesignated Contract Administrator Training Program 2009

Page 37: Airports Procurement 101 Developing an Effective Scope Work Martin Obregon, Jr. Executive Assistant – Airports Purchasing and Contracts Services Los Angeles

References

Total Life-Cycle Cost (Total Cost of Ownership)

http://www.usps.com/cpim/manuals/pm/pm.htm(USPS Purchasing Manual)

Spend Analysis

Report by the US Gov’t. Accountability Office that provides comparative information on what is being spent on goods and services as well as who are the buyers and suppliers to identify leveraging opportunities.

http://www.gao.gov/new.items/d04870.pdf